A BID has been submitted to build a dairy and milk distribution depot on the Drum Industrial Estate, in Chester-le-Street.
If the plans receive approval, a storage building will be created from where milk would be sent to retailers.
At a later stage, the building would be extended to add a dairy, so the plant could eventually receive milk from farms in tankers.
The plant is expected to create 365 jobs.
The planning application will be discussed by Chester-le-Street District Council's planning department on Monday.
No objections have been made by residents, but the Highway Authority has raised "grave concerns" about the unsuitability of the access into the estate from the A693, and the volume of traffic which would use the road.
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